May WTI crude oil (CLK26) on Thursday closed up +4.16 (+4.61%), and May RBOB gasoline (RBK26) closed up +0.1238 (+4.18%). Crude oil and gasoline prices rallied sharply on Thursday amid skepticism about a ceasefire in Iran. Crude prices also rose on a report from Axios on Thursday that said the US is close to escalating the war in Iran if the Start of Hormuz remains closed.
Crude prices jumped on Thursday on signs of possible escalation of the Iran war after Axios reported the Pentagon is developing military options for a “final blow” in Iran that could include the use of ground forces and a massive bombing campaign. If there is no progress in diplomatic talks and the Strait of Hormuz remains closed when President Trump’s deadline ends this weekend, US military escalation appears more likely. President Trump said Thursday that Iran had “better get serious soon, before it is too late, because once that happens, there is no turning back, and it won’t be pretty.”
